Administrative costs

Protection costs

Essential practicalities

Maintenance fees

Financing costs

Legal fees: You'll need a solicitor or conveyancer to do the documentation for buying your property.

Government fees and stamp duty: Government fees include a transfer registration fee and stamp duty. The amount depends on things like which state you live in and whether you're a first-home buyer. Use our stamp duty calculator to work out what you'll need to pay.

Buyer's agent fees: Fees vary with the services, but you're looking at paying an engagement fee in advance, or a percentage of the purchase price of the property you buy.1

Protection costs

Lender's Mortgage Insurance (LMI): You might be required to obtain LMI if you are unable to put down a deposit of at least 20% of the property purchase price.2 Pepper Money uses Lender Protection Fees (LPF), which offers borrowers faster turnaround times as they don’t need third-party approval, like LMIs.

Home insurance: Home insurance covers the cost of loss or damage to your home. It’s also often bundled with a contents insurance policy that protects your possessions from loss or damage. Talk to your insurance provider to work out the right amount of cover.

Income protection: Income protection insurance allows you to keep up with your mortgage repayments for a certain period, in the event of loss of income if you're injured or ill.3 Another option is mortgage protection insurance that can cover your home loan repayments.

Essential practicalities

Utilities and connections: You will need to set aside a certain amount to connect water, electricity and gas as essentials, along with things like a phone line and internet.

Inspection (building and pest): It pays to inspect the property before you buy - a qualified inspector can spot potential problems that you may have overlooked.

Moving costs: The cost of moving house is something to think about. You can opt to do the heavy lifting with the help of friends and family, or pay for removal services.

Maintenance fees:

Council and water rates: Building and property owners pay council and water rates to the state government, so they vary depending on where you live. Think of these fees as your contribution to the upkeep of your neighbourhood.

Strata fees: If you own a unit in an apartment block, you'll need to pay strata fees, which go towards general management of the building and the complex's common areas.4 Strata fees can amount to a significant sum, and vary depending on where you live and the type of building you live in.

Renovation (if needed): If needed, you'll also need to factor in the cost of renovating your home before moving in. Make sure you weigh the cost against what you're paying to buy the home.

Financing costs:

Home loan fees: Upon taking on a home loan, you might be required to pay; a loan establishment fee, a valuation fee for the lender to assess the value of your home, or a discharge fee if you're exiting a prior home loan agreement.

Mortgage repayments: You'll need to make your mortgage repayments at least once a month. The sum you will pay depends on your loan type, your lender, and the amount you borrow. Use our Mortgage Repayments Calculator to determine how much your repayments might be.

Loan administration fees: Many lenders charge a 'service' or administrative fee that accompanies each of your mortgage repayments.

Disclaimer: Please read

These articles provide you with factual information only, and are not intended to imply any recommendation about any financial product(s) or constitute tax advice. If you require financial or tax advice you should consult a licensed financial or tax adviser. The information in these articles is believed to be reliable at the time of distribution, but Pepper does not warrant its completeness or accuracy. Neither Pepper nor its related bodies, nor their directors, employees or agents accept any responsibility for loss or liability which may arise from accessing or reliance on any of the information contained in these articles. For information about whether a Pepper loan may be suitable for you, call Pepper on 13 73 77.

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